operations management mm ugm supply chain management program studi magister manajemen universitas...

Operations Management MM UGM

Supply Chain Management Supply Chain Management

PROGRAM STUDI MAGISTER MANAJEMENUNIVERSITAS GADJAH MADA

PROGRAM STUDI MAGISTER MANAJEMENUNIVERSITAS GADJAH MADA

Adi Djoko GuritnoAdi Djoko Guritno


Schedule (Regular Class)Schedule (Regular Class)

Date Topics

1 - Introduction & Understanding Supply Chain Management

2 - Supply Chain Performance and Drivers

3 - Logistic Network Configuration

4 - Planning Demand and Supply Forecasting in Supply Chain

5 - Supply Chain Integration

6 - Managing Uncertainty in Supply Chain

7 - Customer Value and Supply Chain Management

8 - Determining Optimal Level of Product Availability

9 - Coordinated Product and Supply Chain Design

10 - IT for Supply Chain Management

11 - Strategic Lead Time

12 - Game: Computerized Beer Game & The Risk Pool Game

13 - Presentation of Big Paper

14 - Presentation of Big Paper


ReferencesReferences

Taylor, D.A. 2004. Supply Chains: A Manager’s Guide. Addison Wesley

Simchi-Levi, D, Kaminsky, P and E. Simchi-Levi, 2003. Designing and Managing the Supply Chain. McGraw-Hill Irwin.

Frazelle, E.H. 2002. Supply Chain Strategy. Logistic Management Library

Vollmann, T.E., Berry, W.L., Whyberk, D.C. and F.B. Jacobs. 2005. Manufacturing Planning and Control for Supply Chain Management, 5ed. McGraw Hill

Burt, D.N., Dobler, D.W., and S.L. Starling, 2003. World Class Supply Management: The Key to Supply Chain Management. McGraw-Hill Irwin.

OECD, 2002. OECD Guidelines for Multinational Enterprises Focus On Responsible Supply Chain Management. OECD.

Van Weele, A.J. 2002. Purchasing and Supply Chain Management: Analysis, Planning and Practice, 3ed. Thomas Learning.

Cohen, S., and J. Roussel, 2005. Strategic Supply Chain Management. McGraw Hill Co. Inc.

Christopher, M. 2005. Logistic and Supply Chain Management: Creating Value Adding Networks, 3ed. Prentice Hall

Hugo, M., 2003. Essentials of Supply Chain Management. John Wiley and Sons.


ReferencesReferencesChopra, S., and P. Meidl, 2008. Supply Chain Management: Strategy, Planning, and

Operations. Prentice Hall Inc.

Chandra, C. and J. Grabis. 2007. Supply Chains Configuration: Concepts, Solutions, and Applications. Springer.

Waters, D. 2007. Supply Chain Risk Management. The Chartered Institute of Logistics and Transport.

Blanchard, D. 2007. Supply Chain Management Best Practices. Wiley.

Vollmann, T.E., Berry, W.L., Whyberk, D.C. and F.B. Jacobs. 2005. Manufacturing Planning and Control for Supply Chain Management, 5ed. McGraw Hill

Anklesaria, J. 2008. Supply Chain Cost Management: The AIM & DRIVE Process. American Management Association.

Tyagi, R.K. and P. Gupta. 2008. A Complete and Balanced Service Scorecard. Pearson Education Inc.

Gattorna, J. 2006. Living Supply Chains. Prentice Hall..

Webster, S. 2008. Principle and Tools for Supply Chain Management. McGraw Hill Co. Inc.

Jacobs. F.R., Chase. R.B., and N.J. Aquilano. 2009. Operations and Supply Chain Management. McGraww Hill

Operations Management - MM UGM Jakarta - ADG

Prolog.....

6Operations Management - MM UGM Jakarta - ADG

Indonesia Logistics Facts.........

• Logistics cost = 14.08% production cost (Japan 4.08%)

•Land transportation = US$ 0.34 (Average Asia US$ 0.22)

• Country Competitiveness Index = Rank 54 - World Economy Forum

• Logistics Performance Index = Rank 43 - World Bank

• Corruption Perception Index = Rank 126 - Transparency International

•Challenges :

•Infrastructure

•Regulatory Impact Assessment

•Security and Safety


•Efficiency and effectiveness of the clearance process

•Quality of Transport and IT infrastructure for logistics

•Ease and affordability of arranging shipments

•Competence in the local logistics industry

•Ability to track and trace shipments

•Domestic logistics costs

•Timeliness of shipments in reaching destination.

LPI Dimensions


Fig. Logistics Performance Index

10 Operations Management - MM UGM Jakarta - ADG

Logistics Performance Index = 3,01 (Rank = 43)


Corruption Perception Index = 2,6 (Rank = 126)


Score Rank

Overall LPI 3.01 43

Customs 2.73 44

Infrastructure 2.83 45

International Shipments 3.05 44

Logistics Competence 2.90 50

Tracking 3.30 33

Domestic Logistics Costs 2.84 92

Timeliness 3.28 58

Table. LPI Indonesia


Pinpoint....the academic curriculum and supporting


Master of Management GMUMaster of Management GMU

Marketing

Finance

Operations

Etc.

SCM Supply Chain Mngt

2004

Core CoursesCore Courses Concentration Courses

Concentration Courses

Managing e-Business

e - Marketing

e-Business


Undergraduate GMUUndergraduate GMU

Product Dev.

Industrial Mngt

Operations

Etc.

SCM Supply Chain Mngt

Primary CoursesPrimary Courses Election CoursesElection Courses

Plant Lay Out

Etc.

Just In Time


Supply Chain Management Course

is a special course designed to improve students’ understanding of strategic aspect of logistics mechanism to support the successful implementation of an integrated e-Business systems. The focus of this course basically is linking-up strategic importance of information technology and operations function, such managing flow of goods and services in business within an integrated enterprise settings.

Supply Chain Management Course

is a special course designed to improve students’ understanding of strategic aspect of logistics mechanism to support the successful implementation of an integrated e-Business systems. The focus of this course basically is linking-up strategic importance of information technology and operations function, such managing flow of goods and services in business within an integrated enterprise settings.


Concentration Courses of E-BusinessConcentration Courses of E-Business

e-Business:

Managing e-Business, Analysis and Design e-Business, e-Marketing, Supply Chain Management, Strategic Information Systems, Knowledge Management, Business Project Management

e-Business:

Managing e-Business, Analysis and Design e-Business, e-Marketing, Supply Chain Management, Strategic Information Systems, Knowledge Management, Business Project Management


Definition of Supply Chain:

“The sequence of business processes and information that provides a product or service from suppliers through

manufacturing and distribution to the ultimate consumer.”


Supply Chain Management defined as :

“Efficient Management of the Supply Chain (source,

make and deliver) in order to maximize the value for

money to the customer”.

19


Memperkuat Kolaborasi Demi Pertumbuhan Bisnis Yang SEHATMemperkuat Kolaborasi Demi Pertumbuhan Bisnis Yang SEHAT

CorporateCorporate DistribusiDistribusiPabrikPabrik CustomerCare

CustomerCare

SUPPLY CHAINSUPPLY CHAIN

TUJUAN


Fig. Supply Chain Cycle


Recent Supply Chain Studies Suggest….Recent Supply Chain Studies Suggest….

• “Only 7% of companies today are effectively managing their supply chain. However, these companies are 73% more profitable than other manufacturers. …”

• “Only 7% of companies today are effectively managing their supply chain. However, these companies are 73% more profitable than other manufacturers. …”


Market driven

Supplier driven

Mass Customization

Mass Production

Yesterday model• Independent entities• Inventory based• Low cost production

Tomorrow’s model• Virtual network• Information based• Customer value oriented


Competitive Strategy

Supply Chain Strategy

Facilities Inventory Transportation Information

Supply Chain Structure

ResponsivenessEfficiency

Drivers

Supply Chain Decision Making Framework


THE 6 MYTHS OF CREATIVITY

• 1. Creativity comes from creative types

• 2. Money is a creativity motivator

• 3. Time pressure fuels creativity

• 4. Fear forces breakthrough

• 5. Competition beats collaboration

• 6. A streamlined organization is a creative organization

» (HBR, March 2008)

25


The 7 Principles of SCM (1)

The 7 Principles of SCM (1)1.Segment customer based on service needs

•Supermarket needs frequent visit, monitor stock closely•Wholesaler needs big discount, drug store needs display

2. Customize your distributor• Distributor with strong modern trade team for cosmetic/consumer products• Distributor with strong General Trade (warung) coverage for certain product

3. Listen to signals of market demand• Increase stock level when consumers show good response• Limit distribution if product shows slow sell-out

4. Product closer to customer• Retail is better, closer to end users. Longer SC will impact price to end

consumer


5. Source strategically• In house production versus toll manufacture• Local raw materials versus import

6. Develop supporting strategy• When to expand factory? Expand warehouse? Increase no of salesman?

7. Performance measures• Evaluation, corrective actions




Ord

er S

ize

Time

CustomerDemand

Retailer Orders

Distributor Orders

Production Plan


Ord

er S

ize

Time

CustomerDemand

Production Plan


A Typical Supply ChainA Typical Supply Chain


Decision Phases in A Supply ChainDecision Phases in A Supply Chain

Supply chain strategy or design Supply chain planning Supply chain operation

Supply chain strategy or design Supply chain planning Supply chain operation

Key Point: Supply chain decision phases may be categorized as design, planning, or operational, depending on the time frame over which the decision made in a given phase apply.


Process View of A Supply ChainProcess View of A Supply Chain

• Cycle View: divided into a series of cycles (customer order, replenishment, manufacturing, procurement)

• Push/Pull View: divided into pull (initiated by a customer order) and push (initiated and performed in anticipation of customer order)

• Cycle View: divided into a series of cycles (customer order, replenishment, manufacturing, procurement)

• Push/Pull View: divided into pull (initiated by a customer order) and push (initiated and performed in anticipation of customer order)


Customer Order Cycle

Replenishment Cycle

Manufacturing Cycle

Procurement Cycle

Customer

Retailer

Distributor

Manufacturer

Supplier

Supply Chain Process Cycle


SRM ISCM CRM

Supplier Firm Customer

Source

Negotiate

Buy

Design Collaboration

Supply Collaboration

Strategic Planning

Demand Planning

Supply Planning

Fulfillment

Field Service

Market

Sell

Call Center

Order Management

Supply Chain Macro ProcessesSupply Chain Macro Processes


How Is Strategic Fit Achieved?How Is Strategic Fit Achieved?

Understanding the customer and supply chain

uncertainty

Understanding the supply chain capabilities

Achieving strategic

Understanding the customer and supply chain

uncertainty

Understanding the supply chain capabilities

Achieving strategic


Step 1: Understanding the Customer and Supply Chain Uncertainty

Step 1: Understanding the Customer and Supply Chain Uncertainty

• The quantity of the product needed in each lot

• The response time that customer are willing to tolerate

• The variety of product needed

• The service level required

• The price of the product

• The desired rate of innovation in the product

• The quantity of the product needed in each lot

• The response time that customer are willing to tolerate

• The variety of product needed

• The service level required

• The price of the product

• The desired rate of innovation in the product


Step 2 : Understanding the Supply ChainStep 2 : Understanding the Supply Chain

• Respond to wide ranges of quantities demanded

• Meet short lead times

• Handle a large variety of products

• Build highly innovative products

• Meet a very high service level

• Handle supply uncertainty

• Respond to wide ranges of quantities demanded

• Meet short lead times

• Handle a large variety of products

• Build highly innovative products

• Meet a very high service level

• Handle supply uncertainty


Highly efficient

Somewhat efficient

Somewhat responsive

Highly responsive

Production scheduled weeks

or months in advance with little

variety or flexibility

Production scheduled weeks

or months in advance with little

variety or flexibility

A traditional make-to-stock

manufacturer with production lead time of several

weeks

A traditional make-to-stock

manufacturer with production lead time of several

weeks

Delivering a large variety of

products in a couple of weeks

Delivering a large variety of

products in a couple of weeks

Custom made PCs and servers

in a few days

Custom made PCs and servers

in a few days

The Responsiveness Spectrum


Step 3 : Achieving Strategic FitStep 3 : Achieving Strategic Fit

Implied Uncertainty Spectrum

Responsive Supply Chain

Certain Demand

Uncertain Demand

Efficient Supply Chain

Responsiveness Spectrum

Zone of S

trategic F

it


Efficient Supply Chains Responsive Supply Chains

Primary goal Supply demand at the lowest cost Respond quickly to demand

Product design strategy

Maximize performance at a minimum product cost

Create modularity to allow postponement of product differentiation

Pricing strategyLower margins because price is a prime customer driver

Higher margins because price is not a prime customer driver

Manufacturing strategy

Lower costs through high utilizationMaintain capacity flexibility to buffer againts demand/supply uncertainty

Inventory strategy Minimize inventory to lower costMaintain buffer inventory to deal with demand/supply uncertainty

Lead time strategyReduce but not at the expense of cost

Aggressively reduce even the costs are significant

Supplier strategy Select based on cost and qualitySelect based on speed, flexibility, reliability, and quality

Comparison Efficient and Responsive Supply Chains


Responsive

Product Maturity

Product Introduction

Efficient

Responsiveness Spectrum

Zone of S

trategic F

it

Implied Uncertainty Spectrum

Changes in Supply Chain Strategy Over a PLC

45


Demand-Driven Strategies

• Demand forecast: a process in which historical demand data

are used to develop long-term estimates of expected demand,

that is, forecast

• Demand shaping: a process in which the firm determines the

impact of various marketing plans such as promotion, pricing

discounts, rebates. New product introduction, and product

withdrawal on demand forecast


Matching Supply-Chains with Products Matching Supply-Chains with Products

Efficient

Supply-Chain

Responsive

Supply-Chain

Functional

Products

Innovative

Products

Match

MatchMismatch

Mismatch


Push, Pull, and Push-Pull System

• Push Supply Chain : produksi dan distribusi berdasar ramalan jangka

panjang (tidak merespon perubahan permintaan yg mendadak atau

menyediakan inventory yg besar)

• Pull Supply Chain : produksi dan distribusi dikendalikan menurut

permintaan konsumen dan kurang mendasarkan pada ramalan permintaan

• Push-Pull Supply Chain : kombinasi antara push dan pull SC


Push-Pull Supply Chains

Low

Uncertainty High

Uncertainty

CustomersSuppliers

PUSH STRATEGY PULL STRATEGY

Push-Pull Boundary


Collaborative Planning Forecasting and Replenishment (CPFR)


“Collaboration”


Pressure for change

Pressure for change

Clear shared vision

Clear shared vision

Capacity for change

Capacity for change

Actionable first step

Actionable first step+ + +

Effective management of peopleEffective management of people

=

Sustainable change


• “a collaboration process whereby supply

chain trading partners can jointly plan key

supply chain activities from production and

delivery of raw materials to production and

delivery of final products to end customers”

Collaborative Planning, Forecasting, and Replenishment


Why SC collaboration is important?

• Cut Costs

• Improve Forecast Accuracy

• Reduce Inventory

• Cut Lead & Cycle Times

• Improve Customer Service

Improved Communication

Fewer

Surprises

Better Execution

Leverage Strengths

Of Each Partner

Coordination for Better Optimizations

Win / WinPartnerships


– Information Collaboration

• Basic information sharing

– Process Collaboration

• Close process integration

– Decision Collaboration

• Collaborative decision making

Three Levels of Collaboration


ANALYSIS PLANNING /STRATEGY

EXECUTION

DEMAND & SUPPLY

MANAGEMENT

Fig.CPFR Business Practices


• CPFR is a Long Term effort

– Takes Time to Build Trust

• Both Partners Should be Open Minded

• Open Communication is Key

• Know Your Partner

Things to Remember


• Start from scratch

• Building on existing initiatives

– From SMI/VMI/CRP to CPFR (replenishment as

catalyst)

– From Promotion Planning to CPFR (demand

planning as catalyst)

Starting Point


CPFR Process

59


- Develop Collaborative Arrangement

- What Info are We Going to Share?

- Create Joint Business Plan

- How are We Going to do Business?

- Create Sales Forecast

- What does the Future Look Like?

- Identify Exceptions for Sales Forecast

- What We Know that the Supplier Doesn’t

- What the Supplier Knows that We Don’t

- Resolve/Collaborate on Exception Items

- How are We Going to Overcome the Exceptions?

- Create Order Forecast

- What can We Live With and Move Forward With?

- Identify Exceptions for Order Forecast

- Resolve/Collaborate on Exception Items

- Generate the Orders


1 – Develop Front End Agreement

Manage

Business

Rules

Service Requirements

Planning Decision Policies


2 – Create Joint Business Plan

Supply-Chain

Execution Data

Planning Data

Manage Plan

Data

Collection


3, 4 & 5 - Sales Forecast

Collaborative Sales Forecast

Aggregate Demand Plan

(Sales Forecast)

Step 3: Sales Forecast CollaborationStep 4: Identify Exceptions for Sales ForecastStep 5: Resolve / Collaborate on exception items

Identify,

Prioritize and

Aggregate

Supply

Chain

Requirements

Aggregate Forecast, Projections and

Business Assumptions


6,7 & 8 – Order Forecast

Collaborative Order

Order Forecast

Step 6: Order Forecast CollaborationStep 7: Identify Exceptions for Order ForecastStep 8: Resolve / Collaborate on exception items

Establish

Supply-Chain

Plans

Aggregate Supply Plan (Sales Forecast

balanced with SC Resources)


9 – Generate Order

Customer Order

Sales Order

Receive,

Enter and

Validate

Order

Automatic PO Generation (Frozen

Forecast)


Deconstructing CPFRDeconstructing CPFR

CFR

C

CFCP CR

CPF

CPFR


Design Options for a Distribution NetworkDesign Options for a Distribution Network

• Manufacturer storage with direct shipping

• Manufacturer storage with direct shipping and in-transit merge

• Distributor storage with package carrier delivery

• Distributor storage with last mile delivery

• Manufacturer/distributor storage with customer pickup

• Retail storage with customer pickup

• Manufacturer storage with direct shipping

• Manufacturer storage with direct shipping and in-transit merge

• Distributor storage with package carrier delivery

• Distributor storage with last mile delivery

• Manufacturer/distributor storage with customer pickup

• Retail storage with customer pickup


Manufacturer

Retailer

Customer

Product flow Information flow

Manufacturer storage with direct shipping



Factories

Retailer

Customer


Manufacturer storage with direct shipping and in-transit merge

In-Transit Merge by Carrier



Factories

Warehouse Storage by Distributor/ Retailer

Customer


Distributor storage with package carrier delivery



Factories

Distributor/ Retailer Warehouse

Customer


Distributor storage with last mile delivery



Manufacturer/distributor storage with customer pickup

Factories

Cross Dock

Customer


Retailer

Pickup Sites



Current Trends (Japan)Current Trends (Japan)

• Product cycle and segmentation (Wall-Mart-Nishimoto)

• Demand for freshness of agricultural products and seafood (Carrefour-AEON)

• Infrastructure and the cultural bias for smaller volume/higher frequency conveyance

• Product cycle and segmentation (Wall-Mart-Nishimoto)

• Demand for freshness of agricultural products and seafood (Carrefour-AEON)

• Infrastructure and the cultural bias for smaller volume/higher frequency conveyance

Uniqueness of Consumer Demands



• Tonya• Sogo sosha

• Tonya• Sogo sosha

Unique Business Models Found in Japan



Tonya’s Position in Supply Chain

Producer Producer Producer

Retail Retail Retail

Producer Producer Producer

Retail Retail Retail

TONYA



• Third Party Logistics• Streamlining the Physical Process• Collaboration• Globalization and Production Shift• Environmental Friendliness and Modal Shift• Shift to Customer Driven Logistics

• Third Party Logistics• Streamlining the Physical Process• Collaboration• Globalization and Production Shift• Environmental Friendliness and Modal Shift• Shift to Customer Driven Logistics


Strategic OperationsStrategic

Operations

operations management mm ugm supply chain management program studi magister manajemen universitas...

Documents